Firms That Develop a Stream of New Items That Differ

question 41

Multiple Choice

Firms that develop a stream of new items that differ very little from those now on the market, insert them into the market without great fanfare, watch which ones end users rebuy, and drop those that do not find favor are using the policy of _____.

• A) low-cost development and marketing
• B) forecasting and risk management
• C) approving situations, not numbers
• D) forecasting what is known

Comprehend the concepts of market entry and exit and their impact on market dynamics and pricing.

Identify the factors influencing price setting in competitive markets and how they relate to consumer benefits.

Analyze scenarios where market conditions shift and predict the response from firms and the market as a whole.

Understand the concept of entrepreneurship and its crucial role in fostering economic growth and innovation.

---

Definitions:

Lowballing

A phenomenon in which after agreeing to an offer, people find it hard to break that commitment even if they later learn of some extra cost to the deal.

Implicit Pressure

An unspoken or indirect force that influences individuals to act or think in a certain way, often stemming from societal or cultural expectations.

Minority Opinions

Views or beliefs held by a small segment of a community or group, which can differ significantly from the majority consensus.

Informational Influence

The effect of information or knowledge from others on an individual's attitudes, opinions, or behaviors.